Working for yourself - becoming Self Employed

Published 17 May 2023
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There is nothing more exciting than having a passion for something and wanting to set up your own business to be your own boss. 

Before taking the plunge there are considerations to make and the details below may help you along the way:-

You will need to let HMRC know if you are starting up in self employment or setting up your own business.  You will need to give them information about yourself and the business so that you can register for business taxes.  

You will need to provide the date you are starting your business together with your contact details and the details of the business.  You will also need your National Insurance number to hand.  You also need to be mindful that if you are having people working for you that you need to set up a PAYE scheme.

HMRC will register you for Self Assessment in order that you can file your annual Self Assessment tax return.  Once you are registered for Self Assessment,  HMRC will send you a Unique Tax Reference number which you will need in all correspondence with the Revenue.

Once you are registered for self employment or you have set up a Limited Company you will need to keep all your records for your annual accounts i.e. sales and purchase invoices, loan agreements, business mileage and bank statements.  There are a number of software packages that can help you to do this and make it easy to find information.

Keep an eye on your expenses.  You will have expenses and costs associated with your business.  These can be taken away from your income to work out your profit.

In April of each year you will receive a letter from HMRC asking you to complete a Self Assessment return.

Deadlines to take into consideration are:-

5 October - this is the latest you should register your business after the end of the tax year for which you need to file a return.

31 January - Filing deadline for your Self Assessment tax return and is also the date for the first payment on account for the relevant tax year.

31 July - the second payment on account for the tax year ending the previous 5 April will be due.

Some of the above may seem daunting and take the shine off you wanting to set up in business, but our team at Mayes can help you with all the set up leaving you more time to plan and get your business up and running.  Not only can we prepare your accounts but we can also prepare your Self Assessment Tax return, VAT, CIS and payroll.  We can also help with cash flow plans and business advice.

If you wish to have an informal chat or require any advice on starting up please contact us and we will be more than happy to help.

Mayes Accountants
Tel:  01254 300050
Email:  info@mayesaccountants.co.uk